irda full form

 irda full form

What is IRDAI? Functions of IRDA

The concept of insurance dates back 6,000 years where individuals back then also sought some kind of safety net. This need was realised and gave birth to the concept of insurance. The dictionary meaning of insurance states “an arrangement by which an organisation undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium”.

With the growing need of this concept of security, it gave rise to life insurance at first followed by general insurance. Insurance when introduced in India was under the government regulation. However, to institute a standalone body to oversee the functioning of the growing insurance industry, a separate regulatory body was set up known as the Insurance Regulatory and Development Authority of India or IRDA.

What is IRDA?

IRDA or Insurance Regulatory and Development Authority of India is the apex body that supervises and regulates the insurance sector in India. The primary purpose of IRDA is to safeguard the interest of the policyholders and ensure the growth of insurance in the country. When it comes to regulating the insurance industry, IRDA not only looks over the life insurance, but also general insurance companies operating within the country.

Insurance Regulatory and Development Authority (IRDA) Act, 1999 spells out the Mission of IRDAI as: “... to protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto......”

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